Have we reached bottom? In many cities, knowledgeable observers say yes.

In October 2005 at the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income. By this May it was 5.7 times, just about the historical norm. Home inventories have flattened. The decline in sales has ended – and in some places sales have expedited.

“The indicators are starting to look better,” says Adam York, an economic analyst with Wachovia.

Here are seven markets that SmartMoney magazine says are in line for a rebound:

• Seattle
• Raleigh
• Des Moines
• Philadelphia
• Denver
• Birmingham, Ala.
• Salt Lake City

Source: SmartMoney (11/01/08)